Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 6 years ago,

User Stats

5
Posts
1
Votes
Diane Albano
1
Votes |
5
Posts

2nd position in gap lending, first time investor need help

Diane Albano
Posted

I did a gap loan to a wholesaler who has a few projects going on. This is my first time investing. I received a promissory note/ operating agreement. He promises to pay principal and interest at a yearly rate of 12 %. I loaned them 35K. This is my concern, never took this operating agreement /promissory note to a lawyer to review. BIG MISTAKE. I was given no other paper work. (what paper work should I have been requesting)? I drove down to this property which is in a high crime area, not only high crime but serious crimes. The Rehabber did the bear minimum to fix this house. He signed an exclusive with a Realtor and they showed the house a few times but people can't apply for FHA Loan because there is a Gas Station across the street from the house. My question is when being in 2nd position which now I understand is very risky what paper work should I have been given? Can I be put on the deed as second lien holder?

Shouldn't I have been told who hard money lender is? closing cost? etc. I don't know how much ARV is, the first contractor was fired for doing terrible work, a second contractor was hired to finish the job. what is the proper protocol in this situation. I need an attorney I am looking for one. House is located East Orange NJ, Now they are lowing the price of the house 5K . If anyone can suggest to me or help me please I am pacing the floors.

Loading replies...